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Bush Seeks $2.23 Tril For '04 Budget, Sees Record $307 Bil Deficit Reflects War And Recession Total spending, defense earmarked for 4.2% rise; some agencies face cuts.(A)
Byline: JOSEPH GUINTO
President Bush sent Congress a $2.23 trillion fiscal '04 budget Monday that seeks a major spending increase for the military and slashes billions of dollars in taxes -- but does not count the costs of a possible war with Iraq.
Mitch Daniels, director of the White House's Office of Management and Budget, said Monday that if there were a war with Iraq, Bush would submit a separate request for more funds.
As it is now, the budget would fund the largest defense buildup and biggest tax cut since the Reagan era. It would also swell federal deficits by a total of $1.08 trillion over five years.
"A recession and a war we did not choose have led to the return of deficits," Bush wrote in a 3,000-page budget blueprint delivered to Capitol Hill Monday.
The budget projects a deficit of $307 billion in 2004, up from the expected $304 billion in the fiscal year now under way.
But the White House contends the deficits are necessary and will not put the nation in financial peril. "Compared to the overall federal budget and the $10.5 trillion national economy, our budget gap is small by historical standards," Bush said.
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